Srinagar, June 19: The union territory of Jammu and Kashmir registered a retail inflation rate of 3.93 percent in May, lower than the all-India level of 4.75 percent, providing some respite to residents amid the broader price rise pressures across the country.
The relatively lower inflation rate in J&K is certainly a positive development for the union territory, However, the divergence between rural and urban inflation needs to be addressed to ensure balanced price stability.
According to the Ministry of Statistics and Programme Implementation data, while urban areas of Jammu and Kashmir witnessed inflation at 2.17 percent in May, rural regions grappled with a higher rate of 4.70 percent.
Sameer Ahmad, a local trader in Srinagar, said, “The lower urban inflation is welcome, but the high rural rates are concerning as it impacts a significant portion of the population engaged in agriculture and allied activities.”
At the national level, the Consumer Price Index (CPI) based inflation eased marginally to 4.75 percent in May from 4.83 percent in April, marking a 12-month low. However, the reading remains higher than the 4.31 percent recorded in May 2023, indicating that price pressures have intensified over the past year.
“The all-India inflation rate has remained within the Reserve Bank of India’s target range of 2-6 percent since September 2023, which is a positive sign,” said an economist.
The provisional year-on-year inflation rate for May 2024 stood at 4.75 percent at the all-India level, with rural and urban inflation at 5.28 percent and 4.15 percent respectively, as per the Ministry of Statistics and Programme Implementation.
Jammu and Kashmir authorities have acknowledged the need to monitor the price situation closely, especially in the food and rural segments.
“While the overall inflation rate in J&K is lower than the national average, we remain vigilant about the rural-urban divide and the high food inflation,” said a senior official from the union territory’s Department of Economics and Statistics. “Targeted interventions may be required to ensure broad-based price stability.”